Management and Organizational Studies 2275A/B Chapter Notes - Chapter 27: Unsecured Creditor, Secured Creditor, Chapter 27

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

Business failure: bankruptcy and insolvency law bankruptcy and insolvency act (bia) & companies". Proposals and arrangements: possible for an insolvent debtor to avoid bankruptcy by making a proposal or entering into some arrangement w/ creditors a business is worth more to all of its varied stakeholders. It is legally binding on all unsecured creditors, whether they vote. If the proposal is not approved by the creditors, the debtor is deemed to be bankrupt under a. Arrangements under the ccaa: may be used by corporations that have total debt exceeding million. If the default is temp. , the creditor may decide to continue doing business w/ the debtor. If not at arm"s length, then a transaction is a transfer of undervalue if it just took place within one year prior to bankruptcy. If a non-arm"s length transaction took place within five years prior to bankruptcy, it is a transfer at undervalue if the insolvency and intent criteria are satisfied.